UBS Group announced a reorganisation of its executive board, dividing the leadership of its important wealth-management division into two parts. Additionally, it said goodbye to the former chief of Credit Suisse, the troubled banking competitor that UBS acquired in the previous year.
The Swiss bank announced on Thursday that Ulrich Koerner, former chief of Credit Suisse, will be stepping down from the board at the end of June. This decision comes after the merger of UBS and Credit Suisse’s main legal entities, and Koerner will retire later this year.
Koerner assumed leadership of Credit Suisse in August 2022 with the aim of stabilising the bank following financial losses and scandals. His appointment resulted in a significant restructuring, however, the bank’s customers, investors, and policymakers lost confidence in the midst of the banking crisis last year, ultimately requiring a rescue from UBS.
The changes announced on Thursday highlight the advancements made in UBS’s integration with Credit Suisse, while also recognising the increasing importance of the Asian region to the Swiss banking giant. CEO Sergio Ermotti highlighted the group’s focus on long-term priorities and growth prospects, with a particular emphasis on the Americas and Asia-Pacific regions.
As part of the reshuffle, UBS has announced the appointment of new presidents for Asia-Pacific and the Americas, as well as co-heads for its global wealth management business. This move involves splitting the management role into two regions. Wealth management is UBS’s primary source of profit, making it the largest contributor to the group’s underlying profit last year. This business is highly valued by investors.
Iqbal Khan, who previously oversaw the wealth management business, has been appointed to lead the Asia-Pacific business. Meanwhile, Rob Karofsky, who previously held the position of head of the investment bank, will now serve as president of UBS Americas, according to the bank’s announcement.
The appointments position the wealth executives for potential promotion to the top job at UBS, as noted by Vontobel analyst Andreas Venditti.
According to Venditti’s note to clients, Iqbal Khan and Rob Karofsky are the top contenders for UBS’s CEO position once Sergio Ermotti steps down, which is expected to happen in a few years.
UBS had indicated that Ermotti, who returned as CEO last year following the Credit Suisse deal, was dedicated to overseeing the integration process, and possibly staying on even longer.
Additionally, Edmund Koh, the president of UBS Asia-Pacific, will be stepping down from the board, while Naureen Hassan, the UBS Americas president, has made the decision to retire, according to UBS.
George Athanasopoulos and Marco Valla have been appointed as co-presidents of the investment bank and have also joined the group executive board.
UBS has announced the appointment of Damian Vogel as the new chief risk officer and member of its executive board. Vogel will be taking over from Christian Bluhm, who postponed his retirement last year to assist with the initial stage of the Credit Suisse integration.
